FREE International Trade Protectioism Essay (original) (raw)

One of the greatest international economic debates of all time has been the issue of free trade versus protectionism. Proponents of free trade believe in opening the global market, with as few restrictions on trade as possible. Proponents of protectionism believe in concentrating on the welfare of the domestic economy by limiting the open-market policy of the United States. However, what effects does this policy have for the international market and the other respective countries in this market? The question is not as complex as it may seem. Both sides have strong viewpoints representing their respective opinions, and even the population of the United States is divided when it comes to taking a stand in the issue. After examining all factors on the two conflicting sides, it is clear that protectionism, from the side of the United States, is the only way the American industrial economy can expand .
for the benefit of its citizens and for its national welfare. The economy needs to get itself out of the huge deficit hole that it has created for itself, and lean towards protectionist measures. The dictionary definition of free trade states it as a policy of allowing people of one country to buy and sell from other countries without restrictions. This idea originated with the influential British economist, philosopher, and author of The Wealth of Nations, Adam Smith. He inspired the writings of great economists such as David Ricardo, Karl Marx, Thomas Malthus, and others. According to Smith, specialization and trade is the best solution to create a flourishing American economy, with its industries ruling the economic world. William H. Peterson, holder of the Lundy Chair of Business Philosophy at Campbell University, agrees with Smith's philosophy. He states that the idea of free trade allows the efficient use of economic resources and will promote international cooperation. One of the biggest examples of international cooperation is the Bretton Woods system that originated from a 1944 conference at Bretton Woods, New Hampshire.

1. International Trade and Economic Growth

International Trade and Economic Growth Introduction • International trade, international investment and immigration have all grown rapidly over the pure 200 years. ... People frequently accompany trade and investment flows. y International trade and international investment are two main elements of the growing interdependence of the world's economics commonly referred to as globalization. ... • Statistical evidence strongly confirms that there is a strong positive relationship between international trade and economic growth. Also, the evidence points to a bidirectional rela...

2. The Impact of International Trade

Abstract The goal of international trade is trade goods and services between different countries. If anything at all, international trade increases economic growth and does not account for the major job loss domestically or internationally. ... This should be the goal of international trade because essentially the definition of international trade is "the exchange of goods and services between countries" (Heakal, n. d.). ... International trade helps with gains from trade which is the "improvement of national welfare" (Gerber, 2013). ... International trade satisfies the la...

3. INTERNATIONAL TRADE

Analyzing world trade over the last 150 years, Irwin, pg 89 describes three distinct periods that have been characterized by differing trade patterns. ... Trade Patterns Evaluating the dimensions of degree of liberalization, and the trade commodity composition could make an analysis of trade patterns. ... The First World War brought substantial government regulation of international trade and payments as part of the mobilization of the resources for the war effort. ... In 1947, GATT was established with the aim of reducing trade barriers and a phase of trade liberalization followed. ... Th...

4. International Trade

INTERNATIONAL TRADE: INTERNATIONAL INSTITUTIONS I. ... Keohane explained the incentives for having international regimes through functional explanations. ... Martin and Simmons: Theories and Empirical Studies of International Institutions. The authors surveyed the studies of international institutions since the post world war II period. ... They then proposed recommendations for future studies in international institutions by drawing on recent models of domestic politics, which are based on similar assumptions that characterize international relations. ...

5. International Trade

Basis for International Trade a. What is International Trade International trade is when countries exchange goods and services with one another. ... International trade and finance link world economics. ... International trade is often at the center of economic policy. ... Post WWII International trade and industry was a very powerful influence in Japanese government 1950-1970. ...

6. Companies and International Expansion

., and that two-thirds of the world's earnings are located overseas (cited in international sales, 2013). ... The second benefit of companies expanding internationally is having a large customer base. ... In addition, expanding internationally saves the business when it is threatened to encounter a huge loss. Kiellor (2009) stated that the International Trade Company in Valencia would be out of business if it had not gone international when the domestic market was going immensely low. Going international helps firms make additional revenue in domestic downturns. ...

7. Collective Action and International Trade

(Jones 2007) Individuals and Hegemonies: There Effects on International Trade Through Collective Action The role of collective action on trade is unquestionable. ... Collective action in regards to international trade can fit either of these definitions. ... They may reason that where they purchase their goods from has no direct bearing on international trade. ... The actions of individuals are only one piece of how international trade is affected by collective action. ... This scenario is even more relevant in regards to how a hegemony controls international trad...

8. The World Trade Organization (WTO)

The World Trade Organization, or the WTO, is a multinational organization that controls and deals with the rules of trade between countries. ... The WTO has actively supported countries that consistently violate international labor laws. ... Through claiming that in a sense minimum wage is a barrier to trade the organization could demolish all international and local laws regarding wage. ... Because the WTO is not democratic, its policies are unfair and only serve the needs of international large business. The policies impact many aspects of society, including international environmental laws,...

9. The Free Trade Theory

Free trade concept is known as international trade without interference or barriers from governments. ... Smith believed that free trade will change the international commerce. ... And since that time economists have been arguing whether or not that free trade will be the best for an international economy. ... Implications of Free Trade Optimism There are some economists argues that free trade based on the comparative advantage is not the best for international economy since it1 has some unreal assumptions. ... As result, the free trade with consideration of practical world situation in our ...

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